With just under two days before Theresa May is expected to declare Article 50, the Pound continues to push higher against the Euro and US Dollar. Markets opened where they left off over the weekend, with GBP/EUR at 1.1645, but there appears to be a slight rally for Sterling as it pushes through 1.168 at the time of writing.
Similar trends can be witnessed for GBP/USD, now at 1.259 and quickly heading towards 1.26 for the first time since February.
The Pound’s rally can be attributed to political woes in Europe; with less than 4 weeks before the first round of the French elections, as well as Trump’s failure to pass his new healthcare bill in congress.
There does however, appear to be a more optimistic view towards Brexit from EU officials, following Jean-Claude Juncker’s interview with the BBC last week.
Juncker stated that the EU will not look to punish the UK but must settle the bill for financial commitments before negotiations commence. Michael Barnier the EU’s Chief Negotiator for Brexit, has called for a calm divorce and wants to avoid a situation by which the UK leaves with no deal.
I am everything but in a hostile mood with Britain. Britain is part of Europe, and I hope to have a friendly relationship with the UK over the next decades.
– Jean-Claude Juncker
James Dyson ‘enormously optimistic about Brexit’
The man behind the household Brand Dyson weighed in to the Brexit debate citing it as one of the best opportunities for the UK. He points to countries outside of the EU who have all grown faster than many of the EU member states. Dyson believes the UK should be focusing more on the Asian markets after his company recorded a 41% increase in profits.
His message is consistent with the PM’s vision for a ‘Global’ Britain but many doubt a deal elsewhere would replicate existing trade links as an EU member.
In the short term I expect the Pound to continue to rally as EU officials continue to soften their approach to the Brexit, and with the French elections fast approaching exchange rates of 1.17-18 could be on the horizon.